XML 46 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Regulatory Matters
 12 Months Ended
Dec. 31, 2018
Regulatory Matters  
Regulatory Matters

Note 22 – Regulatory Matters 

 

The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. 

 

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain amounts and ratios (set forth in the table below) of Total capital, Tier 1 capital and CET1 (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined), referred to as the Leverage Ratio. Management believes, as of December 31, 2018 and 2017, that the Company and Bank met all capital adequacy requirements to which they are subject.

  

The actual capital amounts and ratios for the Company and Bank as of December 31, 2018 and 2017 are presented in the table below:

  

    Company     Bank           To Be Well
Capitalized Under
Prompt
    Actual     Actual     Minimum Required For   Corrective Action
(dollars in thousands)   Amount     Ratio     Amount     Ratio     Capital Adequacy Purposes   Regulations *
As of December 31, 2018                                    
CET1 capital (to risk weighted assets)   $ 1,007,438       12.49 %   $ 1,147,151       14.23 %     6.375 %     6.5 %
Total capital (to risk weighted assets)     1,297,427       16.08 %     1,217,140       15.10 %     9.875 %     10.0 %
Tier 1 capital (to risk weighted assets)     1,007,438       12.49 %     1,147,151       14.23 %     7.875 %     8.0 %
Tier 1 capital (to average assets)     1,007,438       12.10 %     1,147,151       13.78 %     5.000 %     5.0 %
                                                 
As of December 31, 2017                                                
CET1 capital (to risk weighted assets)   $ 845,123       11.23 %   $ 969,250       12.91 %     5.750 %     6.5 %
Total capital (to risk weighted assets)     1,129,954       15.02 %     1,033,554       13.76 %     9.250 %     10.0 %
Tier 1 capital (to risk weighted assets)     845,123       11.23 %     969,250       12.91 %     7.250 %     8.0 %
Tier 1 capital (to average assets)     845,123       11.45 %     969,250       13.15 %     5.000 %     5.0 %

  

*Applies to Bank only

  

Bank and holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restricting extensions of credit and transfers of assets between the Bank and the Company. At December 31, 2018, the Bank could pay dividends to the parent to the extent of its earnings so long as it maintained required capital ratios.